Laffans Petrochemicals Ltd Management Discussions.
Company is operating in the business of trading in specialty chemicals on whole sale basis through various distributors of the Company.
During the year under review, the Company has put a focus on trading in various chemicals product and is striving to gain market share in a very competitive market.
FINANCIAL PERFORMANCE OF THE COMPANY:
The issued and paid-up share capital of the Company is Rs. 80,000,000/- consisting of 80 lacs Equity shares of Rs.10/- each as on 31st March, 2019.
Reserves and Surplus:
As on 31st March, 2019 the reserves and surplus are Rs. 52,60,43,179/-.
There are no secured loans outstanding as on 31st March, 2019.
Results of Operation:
Total income of the Company during the F.Y. 2018-19 was Rs. 5,33,45,756/- reflecting an increase of Rs. 52,82,532/- over previous year. Loss for the year Rs. 85,35,010 /- as against the profit Rs. 67,76,581/- for the previous year.
Industry Structure & Development:
Internal Control System:
Company has adequate internal control procedures commensurate with the size of the Company and nature of its Business for the purchase of raw materials and fixed assets and for the sale of goods.
The Company has good relation with its employees.
The Company is a bulk importer of chemicals and commodities and price fluctuations have been rapid leading to losses by the time goods arrive in India. The company is now taking a limited and conservative approach to safe guard itself from such uncertainties. The company is only focusing on high seas sales as a measure to ensure it is not burdened with any bad debts.
The companys business is such that it has to continue to strive for products which are in demand with minimum chances of excess supply. The company is once again looking into the opportunity of commodity imports on bulk items such as coal and tapping the power and steel sectors who have large consumption. The company wants to move gradually with limited resources to test the markets in this sector. The companys profitability has been effected by its investments in the Debt and Capital markets and is constantly looking at risk free returns.